GHC Valuation

Graham Holdings Co

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1090.880

+1.31(0.120%)1D

Overview
Forecast
Valuation
Earnings

GHC Relative Valuation

GHC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GHC is overvalued; if below, it's undervalued.

Historical Valuation

Graham Holdings Co (GHC) is now in the Fair zone, suggesting that its current forward PE ratio of 19.78 is considered Fairly compared with the five-year average of 12.95. The fair price of Graham Holdings Co (GHC) is between 1027.36 to 1403.47 according to relative valuation methord.

Relative Value

Fair Zone

1027.36-1403.47

Current Price：1089.57

Fair

19.67

Trailing

Forward

14.22

EV/EBITDA

Graham Holdings Co. (GHC) has a current EV/EBITDA of 14.22. The 5-year average EV/EBITDA is 9.91. The thresholds are as follows: Strongly Undervalued below 3.82, Undervalued between 3.82 and 6.86, Fairly Valued between 12.95 and 6.86, Overvalued between 12.95 and 16.00, and Strongly Overvalued above 16.00. The current Forward EV/EBITDA of 14.22 falls within the Overvalued range.

20.49

EV/EBIT

Graham Holdings Co. (GHC) has a current EV/EBIT of 20.49. The 5-year average EV/EBIT is 16.68. The thresholds are as follows: Strongly Undervalued below 5.66, Undervalued between 5.66 and 11.17, Fairly Valued between 22.19 and 11.17, Overvalued between 22.19 and 27.70, and Strongly Overvalued above 27.70. The current Forward EV/EBIT of 20.49 falls within the Historic Trend Line -Fairly Valued range.

0.97

Graham Holdings Co. (GHC) has a current PS of 0.97. The 5-year average PS is 0.71. The thresholds are as follows: Strongly Undervalued below 0.26, Undervalued between 0.26 and 0.49, Fairly Valued between 0.93 and 0.49, Overvalued between 0.93 and 1.15, and Strongly Overvalued above 1.15. The current Forward PS of 0.97 falls within the Overvalued range.

0.00

P/OCF

Graham Holdings Co. (GHC) has a current P/OCF of 0.00. The 5-year average P/OCF is 3.82. The thresholds are as follows: Strongly Undervalued below -3.47, Undervalued between -3.47 and 0.17, Fairly Valued between 7.47 and 0.17, Overvalued between 7.47 and 11.11, and Strongly Overvalued above 11.11. The current Forward P/OCF of 0.00 falls within the Undervalued range.

23.31

P/FCF

Graham Holdings Co. (GHC) has a current P/FCF of 23.31. The 5-year average P/FCF is 12.28. The thresholds are as follows: Strongly Undervalued below 2.32, Undervalued between 2.32 and 7.30, Fairly Valued between 17.26 and 7.30, Overvalued between 17.26 and 22.24, and Strongly Overvalued above 22.24. The current Forward P/FCF of 23.31 falls within the Strongly Overvalued range.

Graham Holdings Co (GHC) has a current Price-to-Book (P/B) ratio of 1.10. Compared to its 3-year average P/B ratio of 0.82 , the current P/B ratio is approximately 33.75% higher. Relative to its 5-year average P/B ratio of 0.78, the current P/B ratio is about 40.47% higher. Graham Holdings Co (GHC) has a Forward Free Cash Flow (FCF) yield of approximately 8.77%. Compared to its 3-year average FCF yield of 5.53%, the current FCF yield is approximately 58.72% lower. Relative to its 5-year average FCF yield of 5.02% , the current FCF yield is about 74.57% lower.

1.09

P/B

Median3y

0.82

Median5y

0.78

8.77

FCF Yield

Median3y

5.53

Median5y

5.02

Competitors Valuation Multiple

The average P/S ratio for GHC's competitors is 1.73, providing a benchmark for relative valuation. Graham Holdings Co Corp (GHC) exhibits a P/S ratio of 0.97, which is -43.88% above the industry average. Given its robust revenue growth of 2.57%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Adtalem Global Education Inc

Global Business Travel Group Inc

Peloton Interactive Inc

Performance Decomposition

Market capitalization of GHC increased by 37.18% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 1.58 to 7.02.

The secondary factor is the Revenue Growth, contributed 2.57%to the performance.

Overall, the performance of GHC in the past 1 year is driven by P/E Change. Which is more unsustainable.

2.57%

1.19B → 1.22B

Revenue Growth

-308.81%

-1.59 → 3.32

Margin Expansion

343.42%

1.58 → 7.02

P/E Change

37.18%